How to pay any reimbursable component outside the payroll

Reimbursement is an amount an employee receives only after they have made an eligible expenditure. To claim reimbursement, the company should have defined it as a part of the salary structure. In most cases, the employee has to provide the bills or receipts for the expenditure incurred to claim the reimbursement. Also, if the reimbursements are included as a part of the salary structure, producing bills becomes necessary to get tax exemptions. 

Since these reimbursable components are not primary components, the employer may choose not to display them in the regular payslip. Instead, they can create a separate bank statement for reimbursements in Keka's payroll processing. 

To do so, navigate to Payroll (1), and select the Settings (2) tab. Under Pay groups (3), select the appropriate pay group and click on the Configure (4) icon.

Go to the Salary Components (1) tab and select the appropriate component. Select the appropriate type from the Recurring or Ad hoc component (2) depending on the component you want to edit. You can also filter down the Component Types (6) by choosing reimbursable components or reimbursements from the list. 

Find the component you want to edit and click on the Edit (4) icon.

On the Edit Salary Component overlay window, select the checkbox next to ‘Pay this component outside regular salary of employees. A separate payment statement will be created.’ 

In the case of Tax Exempted Components (Reimbursable Components), you will also see an additional option to hide the component from the payslip and exclude the reimbursement amount from gross earnings calculations. 

Note: This option will be available only if this component is removed from all salary structures.

Click on Update to edit the salary component. 

It is hoped that you found this article useful. In case of more queries, please refer to the other articles or talk to our product experts.